Finance Globe

U.S. financial and economic topics from several finance writers.
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Top Tips for Funding an Emergency Account


Do you have an emergency account? Have you come to realize that you need to start one as soon as possible? Are you concerned about finding enough money to fund the account?

There’s no better feeling than having a fully funded emergency account. With this in place, you know exactly where you’ll turn if you need cash in a hurry.

Unfortunately, some people find it challenging to find enough leftover money every month to fund their account. If this sounds familiar, here are a few tips you can follow to make steady progress in the months to come:

•    Make it a habit. Once you dedicate yourself to saving money – regardless of the account type – you’ll find it much easier to reach your goals. For example, make it a habit to save $25 from every paycheck you receive. It may be a struggle at first, but after a few cycles it’ll become second nature. Note: setup an automatic withdrawal so the money makes its way to your emergency account before you ever have a chance to see it.
•    Don’t be unrealistic. There’s nothing wrong with setting a lofty goal – such as building your account from $0 to $10k – but you need to be realistic about the time frame. Slow and steady wins the race, so stick with your plan and be happy with the progress you make.
•    Don’t “steal” from yourself. Remember this: the purpose of an emergency account is to have money stashed away in the event of an unexpected expense. This can be anything from a car repair to a medical bill. If you steal from your emergency account to make unnecessary purchases, you’ll never reach your end goal.

Even if you’re starting from scratch, these three tips can go a long way in helping you fund an emergency account. Soon enough, you’ll find yourself making progress and feeling better about your ability to deal with any financial challenge that comes your way.

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Comments 1

Frank on Monday, 26 February 2018 15:33

I advise people to save 1-6 months of your normal expenses for an emergency fund.

I advise people to save 1-6 months of your normal expenses for an emergency fund.
Tuesday, 05 March 2024

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